Orica Limited
Orica Limited Fundamental Analysis
Orica Limited (ORI.AX) shows weak financial fundamentals with a PE ratio of 60.70, profit margin of 1.99%, and ROE of 3.73%. The company generates $7.8B in annual revenue with weak year-over-year growth of -3.21%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 22.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ORI.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakORI.AX struggles to generate sufficient returns from assets.
Valuation Score
ModerateORI.AX shows balanced valuation metrics.
Growth Score
ModerateORI.AX shows steady but slowing expansion.
Financial Health Score
ExcellentORI.AX maintains a strong and stable balance sheet.
Profitability Score
WeakORI.AX struggles to sustain strong margins.
Key Financial Metrics
Is ORI.AX Expensive or Cheap?
P/E Ratio
ORI.AX trades at 60.70 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ORI.AX's PEG of 0.87 indicates potential undervaluation.
Price to Book
The market values Orica Limited at 2.36 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.24 times EBITDA. This is generally considered low.
How Well Does ORI.AX Make Money?
Net Profit Margin
For every $100 in sales, Orica Limited keeps $1.99 as profit after all expenses.
Operating Margin
Core operations generate 10.98 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.73 in profit for every $100 of shareholder equity.
ROA
Orica Limited generates $1.63 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Orica Limited produces operating cash flow of $906.71M, showing steady but balanced cash generation.
Free Cash Flow
Orica Limited produces free cash flow of $538.37M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.16 in free cash annually.
FCF Yield
ORI.AX converts 5.99% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
60.70
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.87
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.36
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.16
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.72
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.22
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How ORI.AX Stacks Against Its Sector Peers
| Metric | ORI.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 60.70 | 24.08 | Worse (Expensive) |
| ROE | 3.73% | 921.00% | Weak |
| Net Margin | 1.99% | -113338.00% (disorted) | Weak |
| Debt/Equity | 0.72 | 0.53 | Weak (High Leverage) |
| Current Ratio | 1.22 | 5.09 | Neutral |
| ROA | 1.63% | -9816.00% (disorted) | Weak |
ORI.AX outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Orica Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
4.61%
Industry Style: Cyclical, Commodity, Value
GrowingEPS CAGR
71.65%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
-13.24%
Industry Style: Cyclical, Commodity, Value
Declining